GBP AUD - Long activatedHello traders and analysts;
What can we see?
On the Commodity currency side 0.740x targets in AUDUSD were hit- but then after a new high, the Dollar came into play during new york to provide some fresh liquidity.
The GBP also saw some pullbacks against the Dollar and Yen alike to create some discounted buys for bulls.
The order flow is in effect.
The concern surrounding GBP
Brexit is ever closer to forming - where highs of 1.40 could be in swingers favour, but keep in mind the structural low when the dollar becomes stronger over the winter months as markets in the US begin to shake over the election.
GBP can be shallow losses to buy dips at present but longer term - anticipating discounted dollar vs pound.
Technicals:
What can we see technically?
- Daily bearish but breaking momentum short in the channel - price has been ranging alot between 1.805 - 1.84 highs.
- weekly range formed to created a new structure high and price has now tested the 38.2% fibonacci retracement to show signs of bullish price flows against the Aussie.
- Price trapped all the sellers yesterday dipping to 1.81, but retracement aside - price is now adding longs.
- strong Aussie and Strong GBP
- bounce from the demand zone - this has now been completed
- we can see the trend beginning to add long positions to correct - this has now occurred.
- we have made lower lows and lower highs- showing the correction
- now in a consolidation zone with some great wicks formed and a reversal to the upside - this has been boosted by GBP Tuesday as of writing.
-AUD USD ranging market looking to break 0.74+ for upside strength in the middle channel.
- COT report in favour of GBP now with longs added and shorts closed in the past few weeks however, risk off will shift sentiment to immediate bias.
Fundamentals
Aussie is a commodity currency so is highly affected with exports of natural resources, Gold , Oil , Grains, Copper etc.
Victoria lockdown has caused issues for the restart of the border openings - premiers still in talks to resolve border openings
USD outlook affects the progress of strength for Australia.
Coronavirus within the US sees an affect on the economy for the US as a result affects directly Australia where the index correlates.
USD sees 1Trillion package for stimulus package - but no agreement - COVID update still lacking.
GBP - lacking a trade deal can affect the GBP on the world stage - but positions are being added so this is good for the GBP gaining strength against majors, however with the Aussie struggling with Dollar correction and GBP strength in orders, the Aussie will be unfavourable in the pair.
Note: Trading is about timing. so even if our stop loss gets hit on the chart. We may not have entered all together and orders can be adjusted.
Trade what you see, this is purely our Bias.
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